Deutsche Bank has downgraded its recommendation on Trainline shares to ‘hold’ on the back of the online ticker seller’s interim numbers.
The bank, which previously had a ‘buy’ rating on the stock, pointed to a “significant bounce back” in passenger numbers during the first half, which helped earnings before interest, tax, depreciation and amortisation came in at the upper end of the guidance range.
Trainline said on Wednesday that first-half ebitda were £15m, at the end of top of its £13m to £15m range, compared to a £16m loss a year previously.
However, in a note published on Thursday, Deutsche continued: “Full-year guidance has also remained unchanged, with projected ebitda of £35m to £40m. And that is despite the decision to ramp up its investment in international – platform and marketing – to maximise returns from a step change in competition in the key markets of France, Italy and Spain. This could add £15m to platform costs, with marketing on top.”
Deutsche Bank also reduced its target price, from 412p to 351p.
As at 1430 GMT, shares in the FTSE 250 firm – which fell sharply on Wednesday – were ahead 2% at 305.8p.
